Protective Life Insurance Review – Pros & Cons – FAQs

Protective Life is a “must-shop” if you are in the market for either a Term Life or Guaranteed Universal Life Insurance policy.

Protecting people for more than 110 years —through life insurance, asset protection, and retirement products— Protective Life Insurance is an industry leader.

Because they offer excellent products, at very competitive prices; we have seen them consistently rank in the Top 5 Best Life Insurance Companies… year after year, decade after decade.

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Here’s What You Need to Know About Protective Life Insurance

Protective has been providing Life Insurance protection for families for over 110 years.  Despite their century-long history —and having over $979 billion active policies in force— they boast a very low complaint ratio. According to the National Association of Insurance Commissioners (NAIC), Protective Life’s Complaint Ratio is only 0.36 (with the national median being “1.00”).

Because they offer several products, with optional riders and benefits, Protective Life can accommodate almost any Life Insurance coverage need. 

If you are healthy, it is not difficult to get approved. If you are in poor health, it is obviously more difficult— but not impossible!  In fact, Protective Life is lenient for certain types of health conditions (especially with the pro credit standard to preferred underwriting class upgrade).

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Pros and Cons of Protective Life Insurance

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How is Protective Life Insurance Different?

Protective Life offers some of the most competitive prices on the market, but that’s not the only thing that sets them apart from the competition.  They provide several different Product and Policy choices, which means they have a coverage solution for almost every situation —and every budget— possible.  For example, they have a competitively priced 35 and 40 year level term, which is a product most companies do not offer.

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What Types of Life Insurance Can You Purchase from Protective

Protective Life offers three Types of Life Insurance coverage:

1. Term Life Insurance
2. Universal Life Insurance
3. Whole Life Insurance

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Term Life Insurance: 

• Protective One Year Term —
  Annually renewable term.  
• Protective Classic Choice Term —  
  level term life insurance policies for 10, 15, 20, 25, 30, 35, & 40 years.   

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Universal Life Insurance:

• Protective Advantage Choice UL —
  universal life policy designed for people seeking long-term death benefit protection and flexible features plus the potential for cash-value accumulation.
• Protective Custom Choice UL —
  universal life policy designed for people seeking affordable —short OR long-term— coverage and flexible features.
• Lifetime Assurance UL —
  guaranteed UL solution that combines predictability with affordability to provide guaranteed life insurance coverage that fits within most people’s budget.
• ProClassic II UL —
  current-assumption universal life policy, designed for people seeking flexible death benefit protection for personal or business needs.
• Protective ProClassic Legacy —
  current-assumption universal life insurance policy which can provide death benefit protection for personal or business needs.
• Protective Executive UL —
  current-assumption universal life insurance policy that can provide permanent, individual UL coverage to executive-level employees
• Protective Indexed Choice UL — 
  universal life policy designed for people seeking death benefit protection, flexible features, and potential cash-value accumulation; based on positive performance of the S&P 500 Index.
• Protective Strategic Objectives II VUL —
  variable universal life which is a flexible product that offers protection, flexibility, and cash-value accumulation potential; through various investment options.
• Protective Survivorship UL —
  provides flexibility, with a variety of permanent life insurance options, to tailor a solution for your estate planning needs

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Whole Life Insurance:

• Protective Non-Participating Whole Life —
  whole life product that offers a level death benefit with all premiums, values and benefits guaranteed.

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Have you had first-hand experience with Protective Life?  Whether it was positive or negative, we’d like to hear about it!  Share your story…

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What Else Does Protective Life Offer?

In addition to Life Insurance, Protective Life also offers Annuities. An annuity is the only investment product that can provide the assurance of a series of payments guaranteed to last for as long as you choose — even for as long as you live.

Fixed Annuities

Fixed annuities are designed to meet a variety of retirement planning needs.  These products offer relatively low risk, guaranteed growth and lifetime income. 

Indexed Annuities

Indexed annuities offers market-linked growth with little to no downside risk.  Such annuities generally feature a fixed rate of interest but also the potential for higher returns based on the performance of a specific market index.

Immediate Annuities

Single-premium immediate annuities enable you to convert your assets to a reliable stream of annuity income payments.

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A Brief History of Protective Life Insurance

Protective Life Insurance Company was founded in 1907.

In the year…

• 1932 insurance in force reaches $65 million.
• 1982 insurance in force reaches $13.7 billion. 
• 2007 insurance in force reaches $765 billion & assets reach $41.1 Billion.
• 2013 Protective acquires MONY for $1.088 billion
• 2016 Protective acquires Genworth Life & Annuity & US Warranty Corporation
• 2015 Protective joins Dai-ichi Group, a top tier global life insurer based in Tokyo, Japan.
• 2018 Protective acquires Liberty Life Assurance Company of Boston.  $901 billion of insurance in force & asset reach $90 billion.

In 2019, Protective acquired the individual life and annuity business of Great-West Life & Annuity Insurance Company, the largest acquisition in Protective’s history.  Insurance in force reached $979 billion & assets reached $121 billion. 

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Protective Life Insurance Product Details

LEVEL TERM & GUARANTEED UNIVERSAL LIFE

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Term Life Insurance – Protective Classic Choice:

• Term Period 10, 15, 20, 25, 30, 35, and 40 year
• Minimum Death Benefit – $100,000
• The death benefit is guaranteed
• Premiums level each year during the term period
• Policy may be renewed until age 90

Underwriting Classes:

• Select Preferred
• Preferred
• Non-Tobacco
• Tobacco

Issue Ages:

• 10 Year – 18-75
• 15 year – 18-75 (18-68 for tobacco)
• 20 year- 18-67 (18-62 for tobacco) 25 Year – 18-57 (18-52 for tobacco)
• 30 Year – 18-57 (18-40 for tobacco)
• 35 Year – 18-50 (18-40 for tobacco)
• 40 Year – 18-45 (18-40 for tobacco)

The policy may renew until age 90.

Optional Life Insurance Riders:

• Accidental Death Benefit Rider:
  For an additional fee, this rider provides coverage that pays an additional death benefit if you die from an accident.
• Children’s Term Life Rider:
  For an additional fee, you can use this rider to provide death benefit protection for all-natural, adopted, and stepchildren within the issue age limits.
• Terminal Illness Rider:
  This benefit can accelerate up to 60% of the policy’s death benefit or $1 million, whichever is less if you have a qualifying terminal illness and meets certain terms and conditions.  There is no cost for this benefit.  The death benefit will be reduced by the amount of benefit paid plus accumulated interest.
• Wavier of Premium Rider:
  For an additional fee, you can have your premiums waived if you become disabled.  There is a six month waiting period before the waiver benefit takes effect.

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Protective Guaranteed Universal Life – Advantage Choice Universal Life:

Advantage Choice Universal Life is a guaranteed universal life policy that provides long-term protection and flexible features.  It has the potential for cash value accumulation, based on a fixed interest rate, while providing flexible premium payments and death benefits.

• Minimum Amount:
  $50,000 – Non-Tobacco & Tobacco health class only
  $100,000 – All health classes
• Guaranteed Interest Rate – 2.5%
• Surrender Charge – Years 1-9

Features:

• Death Benefit Coverage –
  The death benefit amount may be adjusted without having to buy a new policy.  You may decrease the face amount subject to minimums and charges after three years.  Keep in mind any changes you make to the face amount will have an impact on the lapse protection and any applicable charges resulting from a face decrease may cause the policy to lose lapse protection.
• Premium Flexibility –
  With the Protective Advantage Choice UL, you have the option of premium flexibility.  You can choose to pay a level premium for their lifetime, for a certain period of time, or you can even adjust premiums to correspond with your expected income level.
• Lapse Protection Endorsement –
  The built-in lapse protection, automatically included on each policy, can guarantee death benefit coverage up your lifetime based on the premiums you paid and the formulas described in the Lapse Protection Endorsement.  As long as the Lapse Protection Account value equals or exceeds policy debt, then your policy is guaranteed not to lapse.  The lapse protection guarantees the policy death benefit only, not the cash surrender value.
• Premium Payments –
  These can be increased, decreased, or skipped, depending on the amount of premium you paid into the policy, the policy cash value, policy disbursements (loans or withdrawals), and the credited interest rate.  Premium payment amounts and schedules are left to your discretion, subject to policy required minimums and IRS Guideline premium maximums, if applicable.  Any premium changes will impact the projected duration of the lapse protection. If policy changes are made, your premium payments generally can be adjusted to maintain the lapse protection.

• Tax-Deferred Growth –
  A portion of each of your premium payments goes into the “policy value” which is the part of the policy that earns interest.  Any interest you earn is on a tax-deferred basis.
• Loans –
  Loans can be taken out any time after the first policy year.  Loan interest is charged at 5% in arrears for all policy years.  Keep in mind loans may negatively impact your policy’s performance, the death benefit, and the lapse protection.

Optional Life Insurance Riders:

• Accidental Death Benefit Rider:
  For an additional fee, this rider provides coverage that pays an additional death benefit if you die from an accident.
• Children’s Term Life Rider: 
  For an additional fee, you can use this rider to provide death benefit protection for all-natural, adopted, and stepchildren within issue age limits.
• Terminal Illness Rider:
  The benefit can accelerate up to 60% of the policy’s death benefit or $1 million, whichever is less if you have a qualifying terminal illness and meet certain terms and conditions.  There is no cost for this benefit.  The death benefit will be reduced by the amount of benefit paid plus accumulated interest.
• Waiver of Premium Rider:
  For an additional fee, you can have your premiums waived if you become disabled.  There is a six month waiting period before the waiver benefit takes effect.
• Extended Care Rider:
  Advances a portion of your base policy’s death benefit if you are certified by a licensed health care practitioner within the past 12 months as chronically ill.  Chronically ill is defined as either unable to perform at least two activities of daily living without assistance for at least 90 days or requiring substantial supervision for protection from health and safety threats due to severe cognitive impairment
• Return of Premium Rider:
  Returns parts or all of paid your premiums during select policy intervals.  For the first 60 days in policy years 21 and 26, you can receive 50% or 100% of their paid premium into the life insurance policy.

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Protective Life Insurance Coverage Details and Guidelines

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WHO ISSUES THEIR POLICIES?

According to Protective Life’s website, “Protective is a registered trademark of Protective Life Insurance Company.  Protective and Protective Life refers to Protective Life Insurance Company (PLICO) located in Nashville, TN and its affiliates, including Protective Life & Annuity Insurance Company (PLAIC) located in Birmingham, AL.  Insurance and annuities are issued by PLICO in all states except New York and in New York by PLAIC.  Product availability and features may vary by state.  Each company is solely responsible for the financial obligations accruing under the products it issues.  Product guarantees are backed by the financial strength and claims-paying ability of the issuing company.”

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HOW DO I GET A LOW RATE?

***AVAILABLE ON BOTH PROTECTIVE TERM LIFE & PROTECTIVE UNIVERSAL LIFE POLICIES***

Pro Credit Standard to Preferred Underwriting Class Upgrade:

Allows consideration for Preferred Non-Tobacco health class, if disqualified solely due to only one of the following cardiovascular risks:

• Blood pressure
• Build
• Total Cholesterol
• Cholesterol / HDL ratio
• Family History (heart disease)

Eligibility for the upgrade to Preferred Non-Tobacco health class depends on the extent of the above + other remaining cardiovascular health issues (see sample underwriting guidelines)

Protective Life Underwriting Solutions (PLUS)

Not everyone will qualify.  Based on individual circumstances.

Ages 18-45 $100,000 to $1,000,000

Ages 46-60 $100,000 to $500,000

• Blood and urine samples not required.
• Underwriting phone interviews conducted by Protective Life employees.
• Uses advanced analytics and automated underwriting platform for ease and convenience.

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Who is Protective Life Insurance For?

Protective life is for anyone who does not have any —or adequate— life insurance protection, for those who rely on their income.  Should that income be eliminated due to a death, a Protective life insurance policy provides protection against possible financial devastation.

WHO IS THE IDEAL PROTECTIVE LIFE APPLICANT?

The ideal Protective Life applicant is between the ages of 18 to 80 years old, who needs life insurance to cover the risk associated with dying young or needs life insurance to protect their assets in their retirement years.   

WHAT IF I’M NOT PERFECTLY HEALTHY?

Even if you have / are….

• high blood pressure
• high cholesterol
• overweight 
• well controlled type 2 diabeties
• some mild forms of heart disease
• some mild forms of cancer longer that 5 years ago
• as well as other health conditions

You still may get a good price from Protective Life.  It is worth the time and effort to apply and go though the underwriting process. 

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How To Apply For Life Insurance with Protective

Signing Up for Protective can be done in a few different ways. There is an online option and a virtual assistant to support you through that process.  You also have the option of calling to complete the process over the telephone.

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SIGNING UP FOR PROTECTIVE LIFE

To sign up for Protective life, you will have to complete…

• an application
• a telephone interview
• a medical exam

In addition, the underwriter will most likely order an attending physicians statement from your primary care doctor and an other specialist you see.  Approval can take as long 6-8 weeks.

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HOW DOES THE APPLICATION PROCESS WITH PROTECTIVE LIFE WORK?

After the initial application is complete and submitted, it will be reviewed by the underwriting department.  It will then be determined if a medical exam and further underwriting is required.

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PROTECTIVE LIFE FINANCIAL STRENGTH AND BBB RATINGS

Protective Life is not accredited by the BBB.  However, Protective is a financially strong, long standing company.  

Other ratings and financial standing are…

• Assets to date: $121 Billion
• Policies in force: $979 Billion
• AM Best Rating: A +
• Fitch Rating: A+

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Protective Life Reviews and Complaints

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Frequently Asked Questions About Protective Life Insurance

Does Protective life insurance cover COVID-19 related deaths? 

Yes.  Life insurance covers death by all causes that are not explicitly excluded in the policy.  In other words, because COVID-19 is not explicitly excluded in the policy, they would NOT deny a claim for that reason alone.

Is Protective Life a good / legit company? 

Yes.  Not only is Protective Life a good / legit company, they are also one of the best in the life insurance industry.

Does Protective Life have the Best Prices for Life Insurance? 

Generally yes. Especially if you are in the Preferred Plus or Preferred underwriting class. 

Protective Life will always be in the “Top 5″ for the term and guaranteed universal life insurance policies.

How easy is it to get approved for life insurance through Protective Life? 

If you are healthy, it is not difficult to get approved. If you are in poor health, it is obviously more difficult— but not impossible!  Protective Life is lenient for certain types of health conditions (especially with the pro credit standard to preferred underwriting class upgrade).

Will I have to give my social security number when I apply? 

Yes.  Protective Life will use your social security number to verify your identity.  Protective will also run a credit check and other types of data reporting such as an RX Prescription Drug database check during the underwriting process.

Does Protective Life have a lot of Complaints?

Not for their size! According to the National Association of Insurance Commissioners (NAIC), Protective Life’s Complaint Ratio is 0.36 compared to the national median of 1.00.  The complaint ratio indicates the number of negative reviews a company receives in proportion to its size.

Who owns the Protective Life Insurance Company?  

In 2015 Protective Life Corporation was purchased by Dia-ichi Life — the 3rd largest life insurer in Japan.

What is Life Expectancy?

Life expectancy is the statistical expectation of how long someone will live at birth based on a number of factors such as socioeconomics, demographic, geographic, thermographic, stenographic, idiographic, and historiographics.

What is “Age Nearest Birthday”?

Protective Life Insurance uses age nearest birthday (this means they make you a year older than you are, exactly 6 months prior to your date of birth).  
For example, let’s say you were going to be 40 years old on July 25, 2021.  Exactly 6 months before, on January 25, 2020, Protective Life made you 40 years old for life insurance even though you were still 39.  On January 25, 2022, you will be 41.  Protective Life considers you a year older than you actually are —starting 6 months before your actual birthday— so they can charge you more money based on the older age.

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The Bottom Line

Protective Life Insurance Company is a “must-shop”, if you are in the market for a term life insurance or guaranteed universal life insurance policy.  The company is financially stable and highly rated.  Their prices are outstanding and the underwriting is not as stringent as other carriers, if you are in average health or have minor health impairments. With term life insurance policies up to 40 years, guaranteed universal life up to age 121, and coverage up to $50 Million, Protective Life should be included in your life insurance comparisons.

If you are in the market for term or guaranteed universal life insurance, make sure you take a look at Protective Life. Usually in the Top 5, Protective Life has some of the best prices in the market and should always be included as an option.